SoundHound AI (SOUN) Stock Rises As Tech Stocks Rebound on Ceasefire News

TLDR

• SOUN stock closed up 1.3% at $6.79 on Wednesday, after jumping as high as 7% at market open
• The intraday surge was driven by broader AI stock recovery following news of a U.S.–Iran ceasefire
• Revenue hit $55.06 million in the last quarter, up 59.4% year-over-year, beating estimates
• Analysts hold a Moderate Buy consensus with an average price target of $14.93–$14.50, implying over 110% upside
• CFO departure and insider selling have weighed on investor sentiment despite strong revenue growth

SoundHound AI (SOUN) stock closed at $6.79 on Wednesday, up 1.3% on the day. The stock is down around 32% year to date.

SoundHound AI, Inc., SOUN

SoundHound AI (SOUN) briefly jumped as much as 7% at Wednesday’s market open before giving back most of those gains, closing up 1.3% at $6.79. The early rally was part of a broader AI and tech stock rebound following reports of a U.S.–Iran ceasefire, which eased investor nerves and sent money back into growth names.

Volume came in around 21.3 million, about 18% below the stock’s daily average. The stock’s 50-day moving average sits at $7.66, while its 200-day average is at $11.62 — both well above the current price.

SoundHound reported revenue of $55.06 million for the most recent quarter, above the $53.88 million analyst estimate. That’s a 59.4% jump from the same period a year ago. For the full year, the company posted record revenue of $169 million, nearly double the prior year’s $84.7 million.

Earnings per share came in at ($0.02), in line with expectations. The company posted a negative return on equity of 3.63% and a net margin of -8.71%. Analysts expect an EPS of ($0.38) for the current fiscal year.

Analyst Views on SOUN

Cantor Fitzgerald upgraded SOUN to overweight in December, raising its price target from $13 to $15. HC Wainwright maintained a buy rating with a $20 target — the most bullish on the Street — citing the company’s goal of reaching adjusted EBITDA break-even by late 2026.

D.A. Davidson’s Gil Luria pointed to SoundHound’s current ratio of 4.59 as a sign of financial health, and said the stock may be undervalued following its recent decline.

The consensus rating across MarketBeat data sits at Moderate Buy, with five buys, three holds, and one sell. TipRanks shows a Strong Buy consensus with four buys and one hold over the past three months, and an average price target of $14.50.

Insider Selling and CFO Exit

Despite the analyst optimism, insiders have been selling. SVP Majid Emami and insider James Ming Hom each sold 31,019 SOUN at $6.79 on March 20th. Over the past three months, insiders have sold a combined 337,649, valued at around $2.45 million. Insiders now own 9.17% of the company.

CFO Nitesh Sharan also announced his exit in April, which added to investor caution.

On a positive note, SoundHound recently expanded its partnership with Mexican insurer Quálitas. Its AI now handles around 100,000 calls per month for the company — a 150% increase since 2022.

Institutional ownership stands at 19.28%, with several firms growing their positions in recent quarters.

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